All
investments made or held by a company in any property, security or other asset
shall be made and held by it in its own name. The company may hold any shares
in its subsidiary company in the name of any nominee or nominees of the company,
if it is necessary to do so, to ensure that the number of members of the
subsidiary company is not reduced below the statutory limit.
This
Section does not prevent a company:
(a)
from depositing with a bank, being a banker of the company, any shares or
securities for the collection any dividend or interest payable thereon; or
(b)
from depositing with, or transferring to, or holding in the name of a scheduled
bank, being a bankers of the company, shares or securities, in order to
facilitate the transfer thereof;
(c)
from depositing with or transferring to any shares or securities by way of
security for the repayment of any loan advanced to the company or the
performance of any obligation undertaken by it;
(d)
from holding investments in the name of depository when such investments are in
the form of securities held by the company as a beneficial owner.
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